simulations from a purely forward-looking model, this paper shows that indeterminacy can introduce a sizable persistence in the … self full-filling expectations. By neglecting indeterminacy the estimates of the forward- looking term of the Phillips …

omission in the VARs of a variable capturing the high persistence of expected inflation under indeterminacy is found to account …

presence of indeterminacy, sunspot equilibria can exist. I study the stability of the trap, subject to continuous-time sunspot …

the high persistence of expected inflation under indeterminacy is found to account for the price puzzle observed in actual …